Income Tax Assessment Act 1997



Division 152 - Small business relief  

Subdivision 152-A - Basic conditions for relief under this Division  

SECTION 152-5   What this Subdivision is about  

This Subdivision sets out some basic conditions for relief. If the basic conditions are satisfied, an entity may be able to reduce its capital gains using the small business concessions in this Division.

The 2 major basic conditions are:

  • (a) the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000; and
  • (b) the CGT asset must be an active asset.
  • Additional basic conditions must be satisfied in the following circumstances:

  • (a) the CGT asset is a share in a company or an interest in a trust;
  • (b) the CGT event involves certain rights or interests in relation to the income or capital of a partnership.
  • Some of the concessions have additional, specific conditions that also must be satisfied. For example, the 15-year exemption applies only if you have held the CGT asset for at least 15 years and you retire.

    There are limitations on the availability of the small business concessions for CGT events J2, J5 and J6.

    You do not need to satisfy the basic conditions for the retirement exemption in relation to CGT events J5 and J6.


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